Loan Modification Ruins credit Score and not finalized

[Cherylbelinda]

Hello everybody.

 

I applied for a loan modification last spring and was given the okay to make trial payments for June July and August. I have been making those payments on time and every time I call the mortgage company they tell me they are still processing the arrangement.

 

In the meantime I have been reported as late to the credit bureaus and it has taken my score down. I came to this forum and got some great information and that information led to me buying my house which is this house. Additionally I have been making credit card payments and never missed any payments. I have watched my credit score decrease through this whole process.

 

As a matter of fact it has plummeted. My creditors have decreased my credit limits and some of them have closed my accounts. The accounts that were closed are accounts that had not used. These accounts were Comenity and Synchrony Bank.

 

At this point, I just want to make sure that I keep my house. I have been paying those bills every month and going without things I needed so that my credit would continue to improve.

 

I mean I pay all my bills on time I have a lot.debt to income ratio is out of whack however once I started reading information on credit boards, I worked very hard to keep my commitments.

 

I I don't want to take advantage of any kind of situation but at this point I will begin making sure that my needs are met and continue to pay my credit card as best I can. I mean I feel so bad for doing all the things the right way and still not having any success. Any suggestions?

[Kuuner]

Not sure there was a question here but...well...that happens often sadly. until you are permanently modified you are not paying per contractual agreement and most if not all lenders include language on trial mods stating that your credit could be impacted negatively. So, they'll tell you they told you. The other downside is that while your credit score went down, the other creditors got nervous and capped or closed your accounts, exacerbating an already bad situation. It's common unfortunately but, it's not permanent. Get your permanent mod then rebuild over time. That's all you can do really.

[Cherylbelinda]

Thank you. I will. I Will Look at mod again about credit. They told me today they are looking at title and maybe another appraisal.